USCB Financial : Second Quarter 2023 Earnings Presentation

EARNINGS PRESENTATION

SECOND QUARTER 2023

NASDAQ: USCB

FORWARD-LOOKING STATEMENTS

This presentation may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words "may," "will," "anticipate," "should," "would," "believe," "contemplate," "expect," "aim," "plan," "estimate," "continue," and "intend," as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management's long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.

These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

• the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
• our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
• the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
• the efficiency and effectiveness of our internal control procedures and processes;
• our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
• adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
• deposit attrition and the level of our uninsured deposits;
• legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the implementation of the Current Expected Credit Losses
  ("CECL") standard;
• the effects of our lack of a diversified loan portfolio and concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate;
• effects of climate change;
• the concentration of ownership of our common stock;
• fluctuations in the price of our common stock;
• our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
• inflation, interest rate, unemployment rate, market, and monetary fluctuations;
• impacts of international hostilities and geopolitical events;
• increased competition and its effect on the pricing of our products and services as well as our margin;
• the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
• other risks described in this presentation and other filings we make with the Securities and Exchange Commission ("SEC").

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this presentation are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports USCB Financial Holdings, Inc. filed or will file with the SEC.

Non-GAAP Financial Measures

This presentation includes financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company's expectations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company's business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly

comparable GAAP measures can be found in the 'Non-GAAP Reconciliation Tables' included in the presentation.2 All numbers included in this presentation are unaudited unless otherwise noted.

Q2 2023 HIGHLIGHTS

GROWTH

Average deposits increased by $155.8 million or 9.1% compared to the second quarter 2022. Liquidity sources increased to $853 million in on-balance sheet and off-balance sheet sources. Insured and collateralized deposit, increased to 51% from 43% in the second quarter 2022.

Average loans, excluding PPP loans, increased $290.1 million or 22.7% compared to the second quarter 2022.

Tangible Book Value per Share (1) was $9.40 includes an after-tax unrealized security loss impact of $2.41.

	Net income was $4.2 million or $0.21 per diluted share.
	ROAA was 0.77% compared to 1.08% for the second quarter 2022.
	ROAE was 9.13% compared to 11.38% for the second quarter 2022.
PROFITABILITY	Efficiency ratio was 65.25% compared to 55.34% for the second quarter 2022.

CAPITAL/

CREDIT

Credit metrics remain strong.

One C&I loan classified as nonaccrual for a total of $486 thousand.

ACL coverage ratio was 1.18%. Effective January 1, 2023, the Company adopted the CECL methodology for estimating credit losses.

Repurchased 77,603 shares of common stock during the quarter at a weighted average price of $9.58. 172,397 common shares remain authorized for repurchase under the repurchase program.

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1. Non-GAAPfinancial measure.

HISTORICAL FINANCIAL

EOP for Balance Sheet amounts

Loans (1)				Deposits
In millions				In millions
		$1,596			$1,921
$735				$782
2016 2017 2018 2019 2020 2021 2022	Q1	Q2	2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023			2023 2023

Total Stockholders' Equity

In millions

$184

$86

2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023

ACL/Total Loans

1.17%

1.18%

2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023

Total Revenue

In millions

$69

$37

2016 2017 2018 2019 2020 2021 2022

1. Loan amounts include deferred fees/costs.
2. Non-GAAPfinancial measure. Annualized.

Net Charge Off

In thousands

		$29
2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023

-$1,019

Efficiency Ratio

94.15%

65.25%

2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023

Nonperforming

Assets/Total Assets

1.58%

0.02%

2016 2017 2018 2019 2020 2021 2022 Q1 Q2

2023 2023

PTPP ROAA (2)

1.02%

0.24%

2016 2017 2018 2019 2020 2021 2022	Q1	Q2
	2023 2023

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FINANCIAL RESULTS

In thousands (except per share data)

Balance

Sheet

(EOP)

Income

Statement

		Q2 2023	Q1 2023	Q2 2022
Total Securities	$439,398	$415,837	$456,135
Total Loans (1)	$1,595,959	$1,580,394	$1,372,733
Total Assets	$2,225,914	$2,163,821	$2,016,086
Total Deposits	$1,921,301	$1,830,462	$1,738,720
Total Equity (2)	$183,685	$183,858	$180,068
Net Interest Income	$14,173	$15,997	$15,642
Non-interest Income	$1,846	$2,070	$1,617
Total Revenue	$16,019	$18,067	$17,259
Provision for Credit Losses	$38	$201	$705
Non-interest Expense	$10,452	$10,176	$9,551
Net Income	$4,196	$5,809	$5,295
Diluted Earning Per Share (EPS)	$0.21	$0.29	$0.26

Weighted Average Diluted Shares

19,639,682

19,940,606

20,171,261

(1)	Loan amounts include deferred fees/costs.	5
(2)	Total Equity includes after-tax unrealized security losses of $47.1 million for Q2 2023, $42.1 million for Q1 2023, and $36.9 million for Q2 2022.